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LSE US Centre: Despite job losses, lower prices from trade with China have left US households massively better off
14 August 2019
When China joined the World Trade Organization in 2001, exports to the US market surged. In new research Xavier Jaravel and Erick Sager find that the rise of lower priced Chinese imports also helped to reduce prices of US-made goods, increasing households' purchasing power by about $1,500. They write that this large increase in US consumer purchasing power was likely more than enough to compensate for trade-related job losses.